As New Attention On Cryptocurrency Grows, More Money Is Being Shifted From Stocks
The stock market has long been a marketplace where supply and demand dictate the appeal of equities in certain companies. But now the rise of cryptocurrency due to popular coins like bitcoin, ether, Ripple, and litecoin has grown larger than anyone may have imagined. What started as intrigue has now quickly blossomed into something much greater and it could be a bad thing for stocks.
The withdrawal of money from equities and precious metals has directly resulted in the prices of things like bitcoin greatly increasing. Investors have now figured out that the cryptocurrency world has become more stable than was previously realized. As CNBC reports, the stock market has seen the largest pull back of cashflow since 2004. More than $30 billion has been taken out over the past 10 years and it has included money being shed from a market mainstay, precious metals.
Blockchain technology has brought about new opportunity for investors. Look at companies like LAToken and MyBit. These “bitcoin companies” have created ways of “tokenizing” investments. This allows smaller scale investors to purchase large-scale investments. The decentralization of the platform itself makes it possible to participate without large fees like traditional markets could make investors incur.
To put things into perspective for traditional investors, CEO of LA Token Valentin Preobrazhenskiy says:
“We build a NASDAQ on Blockchain with a wider range of tradable assets, blurring the boundaries between crypto- and real economies, and offering our clients a dramatic reduction of listing costs, settlement time, and transaction costs.”